Although there has never been a bigger buzz about startup companies than there is today, it is very important to retain a West Palm Beach business litigation attorney to help avoid some of the common legal pitfalls influencing companies.
All too often, founders of companies are excited to get the ball rolling and launch their new business that this often means they—inadvertently—compromise the potential success of the business. What seems like a small oversight now can turn out to be a big stumbling block down the road…
It’s much easier to have all your ducks in a row when you start the company as opposed to dealing with legal disputes several years later. Even if you’re somewhat knowledgeable about starting a company, having the oversight of an experienced West Palm Beach business litigation attorney can make sure you don’t miss any of the small details. Read more about the common legal mishaps businesses find themselves in here.
Read on to learn more about these five big mistakes and how you can avoid them:
1. Not Acknowledging Corporate Mortality – Although no one wants to plan for the failure of their business, the reality is that a lot of startup companies don’t make it. In fact, depending on the type of business you run and the industry you work in, most startup businesses fail within the first five years.
If you find yourself heading for membership in a group like this, then you need to have mechanisms in place that will allow the owners of the company to dissolve the business.
The founders might vote to go in different directions and you want to have a tool in place to address this. It is always a good idea to plan for the worst and hope that you don’t have to address this issue. Having the safety net there can be very helpful.
2. Improperly Protecting Intellectual Property – One of the most important steps you’ll take as a business owner is to protect your company’s intellectual property. You can do this by patenting, trademarking or copyrighting your work—including the work on your website.
You also want to make sure that all work created by contractors and employees is done on work-for-hire basis, meaning that the company retains the results.
3. Mixing Funds – If you elect to put together a formal corporate structure, then you need to abide by all formalities. You should never co-mingle business assets with your own. This can open you up to claims that your business is a fictitious entity.
You could be individually targeted if you were sued. One way to avoid this is by setting up different bank accounts for your business assets and capital.
4. Inadequate Due Diligence – You need to ensure that the name of your company has not already been taken. This could lead to disputes about ownership of the name and litigation issues.
At this point, if you have already selected a company name, you or the company could be liable if someone else already owns the rights to use it. A little prevention by working with a West Palm Beach business litigation attorney can go a long way.
5. Selecting the Wrong Entity – There are many different types of corporate structures such as partnerships or proprietorships, C corporations, and limited liability corporations (LLCs). Each has its own advantages and disadvantages.
Selecting the right one from the outset can help you avoid challenges down the road and can make it clear about the responsibilities that each member plays in the business.
Skyrocket to Success with a West Palm Beach Business Litigation Attorney
Choosing the right entity from the beginning eliminates the potential for numerous problems. It is a good idea to select the proper entity after a meeting with a West Palm Beach business litigation attorney.
Working with an attorney from day one allows you to avoid common pitfalls and legal problems. You can also learn more about the biggest legal mistakes made by startup companies here.
Having a West Palm Beach business litigation attorney to help you when you are ready to launch the company goes a long way toward minimizing future problems and ensures that you have the documents you need already on hand and ready to go.
Visit here to get started with a West Palm Beach business litigation attorney today.